Why Costco (COST) is a Top Dividend Stock to Buy in August

Costco Wholesale Corporation (NASDAQ:COST) is included among the 10 Best Dividend Stocks to Buy in August. 

A customer in a warehouse aisles, browsing the wide range of branded and private-label products.

Costco Wholesale Corporation (NASDAQ:COST), a top membership-based warehouse retailer known for selling bulk items, posted strong sales results for June. According to a recent company update, Costco Wholesale reported a 5.8% increase in total comparable sales for the month. US comparable sales alone grew by 4.7%. Monthly net sales reached $26.44 billion, marking an 8% increase from $24.48 billion in the same period a year earlier.

When excluding the effects of fuel prices and foreign exchange, total comparable sales rose 6.2%, while US sales adjusted for those factors were up 5.5%. The company continues to grow steadily despite its already massive size. For the current fiscal year, which wraps up around late August, the company plans to add a net total of 24 new warehouse locations. Looking ahead, the leadership team is targeting the opening of 25 to 30 new stores annually, with significant growth potential still available in both the US and global markets.

Costco Wholesale Corporation (NASDAQ:COST) is a solid dividend payer. On July 16, the company declared a quarterly dividend of $1.30 per share, having raised it by 12% in April. This marked the company’s 21st consecutive year of dividend growth, which makes COST one of the best dividend stocks. COST has a dividend yield of 0.56%, as of July 28.

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Disclosure: None.